H.R.Khanna, J.

(1) THIS appeal by special leave is directed against the judgment of Allahabad High court whereby that court answered the follow* ing two questions in a reference made to it under S. 66(2) of the Indian Income Tax Act, 1922, (hereinafter referred to as the Act) :

(I) Whether there was material for the finding that the shares in question were purchased by the assessee with a view to acquire the managing agency and the control of the company or the shares constituted his stock-in-trade ?

(II) Even if the shares in question did not constitute the stock-in-trade of the assessee, whether the profit made on the sale of shares did not constitute capital gain chargeable to income-tax under S. 12-B of the Act ?"

ON the first question the answer of the High court was that there was no material for the finding that the shares in question were purchased by the assessee with a view to acquire the managing agency and control of the company. It was further held that the shares constituted the stock-in-trade of the assessee. In view of the above, the High court held in answer to question No. (ii) that the prints made by the sale of shares could not con